INDUSTRY INSIGHT
Social Procurement in Security: What It Means for Victorian Buyers
How Victoria’s Social Procurement Framework affects security service contracting — and why choosing the right provider can help meet your social procurement obligations.
- Victoria’s Social Procurement Framework (SPF) requires government agencies to consider social and sustainable outcomes when buying goods and services.
- Security services are a significant spend category — choosing an SPF-aligned provider helps agencies meet reporting obligations.
- Key SPF outcomes in the security context include opportunities for disadvantaged Victorians, engagement with Aboriginal businesses, and social enterprise engagement.
- Buyers should request a social procurement statement from security providers before contract award.
What Is the Victorian Social Procurement Framework?
The Victorian Social Procurement Framework (SPF), administered by the Department of Treasury and Finance, requires Victorian Government departments, agencies, and prescribed entities to use their purchasing power to generate social and sustainable outcomes beyond the immediate transaction.
In practice, this means that when a Victorian Government agency contracts for security services, the procurement decision must account for:
- Opportunities for disadvantaged Victorians — including people with disability, long-term unemployed, and those leaving the justice system
- Gender equality — providers with demonstrable commitments to gender pay equity and advancement of women
- Sustainable and responsible business practices — including Modern Slavery Act compliance and ethical supply chains
- Opportunities for Aboriginal Victorians — engagement with Aboriginal businesses and employment of Aboriginal Victorians
- Engagement with social enterprises and disability enterprises
Why Security Spend Matters for Social Procurement
Security services are among the larger discretionary spend categories for Victorian Government facilities. A typical mid-size government facility may spend $200,000–$500,000 annually on security services. This scale creates significant leverage.
Security is also a labour-intensive industry — most of the contract value goes directly to officer wages. Choosing a provider that invests in its workforce, pays at or above Award rates, and actively recruits from priority cohorts can generate measurable social outcomes at relatively low administrative cost to the buyer.
The security industry has historically been a pathway to employment for people facing labour market barriers, including veterans, people with lived experience of the justice system, long-term unemployed individuals undertaking Certificate II or III in Security Operations, and new migrants and refugees with relevant prior security or policing experience.
What to Ask Security Providers About Social Procurement
Frequently Asked Questions
Does the Social Procurement Framework apply to private businesses?
The Victorian SPF is mandatory only for Victorian Government agencies and prescribed bodies. However, many private organisations — particularly ASX-listed companies and large NFPs — have adopted voluntary social procurement policies that mirror the SPF framework.
At what contract value do SPF obligations apply?
The SPF applies to all Victorian Government procurement. However, reporting and documentation requirements are proportionate to contract value. Contracts above $1 million attract the most rigorous requirements, including mandatory social procurement targets and annual reporting.
Can social procurement criteria be a scored criterion in a security RFT?
Yes. For higher-value contracts, it is appropriate to include a scored social value criterion, typically weighted at 5–15% of the overall evaluation. This must be disclosed in the RFT documentation and applied consistently to all responses.
The Security Industry’s Social Procurement Opportunity
The security industry sits at an interesting intersection of social procurement considerations. It is a large employer, it provides entry-level pathways into the workforce, and its service delivery is fundamentally local — officers must physically be in the location where they work, which means employment benefits accrue locally.
Workforce Development in the Security Sector
In Victoria, entry-level security roles typically require a Certificate II in Security Operations and the relevant licence from Victoria Police’s Licensing and Regulation Division. The licensing pathway is accessible to people with limited prior qualifications, making security a genuine entry point for workers who face barriers to professional employment.
From a social procurement perspective, this means buyers can make meaningful impact by:
- Preferring providers who invest in training programs for licence candidates from priority cohorts
- Requiring providers to report on their workforce’s demographic composition
- Including questions about career progression and above-Award wages in procurement evaluation
- Asking about partnerships with TAFE providers, employment services, or community organisations that support the transition of disadvantaged workers into the security industry
Indigenous Business Engagement
Indigenous Business Australia and Supply Nation maintain registries of certified Aboriginal and Torres Strait Islander businesses. While the number of Aboriginal-owned security businesses is currently limited, buyers can contribute to growth in this area by:
- Including Indigenous business engagement as an evaluation criterion in security RFTs
- Asking security providers about their partnerships with Aboriginal-owned businesses in their supply chain (uniforms, equipment, training, and subcontracting)
- Connecting security providers with Supply Nation to support supplier diversity development
Modern Slavery Considerations
The Commonwealth Modern Slavery Act 2018 requires entities with annual consolidated revenue over $100 million to report on modern slavery risks in their operations and supply chains. Security services present specific modern slavery risks, including:
- Below-Award wage payment practices, particularly for overnight and weekend shifts
- Unlicensed workers engaged through informal subcontracting arrangements
- Uniforms and equipment sourced from offshore suppliers without ethical supply chain visibility
Buyers can address these risks by requiring security providers to supply a current Modern Slavery Statement and by conducting spot-check audits of worker entitlements as part of contract management.
Legion Security Group provides corporate security, industrial security, mobile patrol, and static guard services to Victorian Government agencies and corporate clients. Learn more about our approach to compliant, licenced security in Victoria.
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Legion Security Group works with Victorian Government agencies and corporate clients who value compliance, quality, and responsible procurement practices. Learn about our social procurement commitments and diverse workforce.
